Replies to post #14949 on Solei Systems Inc. (fka SOLI)

[layoutd21]

Thanks for the responses all.

Still have a hard time believing a seller would voluntarily give up $10s of millions of dollars just to maintain operational control and not deal with the hassle of an IPO. You'd demand a much larger equity stake too, no? And if they're just being granted the equity after the fact then you're just getting more dilution (options, preferred shares, etc). Just like there's up to $6m of dilution out there from the convertible note offering. What's the alternative, Scott doesn't hold full ownership and Korangy still owns part of the subsidiary? Then you have to assign SOLI a higher value to justify $100m market cap.

RE the Other Acquisition: Seeing as SOLI doesn't have a ton of cash, they're going to need to do another raise or issue more equity to pull this off. Either way it's dilution. They could get a good deal and plenty of synergies, sure, but I wouldn't expect the next company to allow itself to be swindled like Careclix. Definitely going to ask for more up front, right?

RE DTGoody - "Management wasn't Dumb instead they are Geniuses as they are going to be receiving pay and stock options. You see these Guys are going to become Billionaires off of this Deal once SOLI up list" - this is why I have a hard time taking this stuff completely seriously. For Mr. Scott to become a billionaire, the stock needs to go to $20/share based on his current ownership and no more dilution, for anyone else it need to go up a heck of a lot more than that. If Korangy has a what, a 5% stake, you need a $200 share price. Mr. Scott is the only one becoming a billionaire unless this thing goes to a much higher market cap than Teledoc.

RE "the acquisition has already closed, so the time for asking why has passed." - the time for asking why is absolutely not over until you understand the underlying business. You don't even know what their revenue has been, it's conjecture. Maybe part of the reason for the low price is the business isn't doing as well as you think? That's a 100% valid question to still be asking.